© Reuters. People visit a main shopping area in Shanghai, China July 12, 2021. Picture taken July 12, 2021. REUTERS/Aly Song/Files
BEIJING (Reuters) – The Shanghai government will support companies applying for approval to sell duty-free goods, and encourage duty-free shops to be set up at airports, hotels, malls and other commercial venues, municipal authorities said.
The development of a “duty-free economy”, which will encourage spending on imported products, including heavily-taxed luxury goods, was outlined in a 2021-2025 consumption plan released on Saturday.
Presently, duty-free spending in China is largely concentrated in the southern island province of Hainan, where the annual limit on individual duty-free spending was hiked to 100,000 yuan ($15,467) last year from 30,000 yuan previously.
Tariffs on imported consumer goods vary in China, with taxes on some luxury items such as perfumes and watches exceeding 30%.
Lured by the substantially lower prices, millions of domestic tourists flock to Hainan’s malls each year, and the numbers have been boosted by…
